Apple receives 1.8 billion euros EU fine for app restrictions on music streaming services

The European Commission is fining Apple 1.8 billion euros for hindering competing music streaming services such as Spotify. Apple would abuse its power because Apple Music rivals are not allowed to refer outside the app to take out a subscription.

By imposing restrictions on app developers, Apple has violated competition law, the European Commission said after an investigation. The restrictions prevented music streaming services such as Spotify from offering cheaper subscriptions outside the App Store. It is the first time that the EU has punished Apple for abusing its power in the streaming services market. Last month the Financial Times announced that an EU fine for Apple was imminent.

The investigation by the European Commission was launched after complaints from Spotify in 2019. The music streaming service claims that the restrictions Apple imposes on competing services benefit Apple Music, the iPhone maker's music streaming platform.

App developers must pay Apple a fee for purchases made through the App Store. Spotify and other providers therefore prefer that users take out a subscription outside of Apple's app store. However, Apple stopped this. The Commission now says that Apple is violating European rules when it comes to free competition.

Update, 4:45 p.m.: Apple is appealing against the EU fine. In a press release, Apple writes that the European Commission has found no evidence that harm has been caused to consumers. The company is therefore appealing. The tech giant states that the digital music market has grown exponentially in recent years and that 'Spotify is the biggest winner'. In addition, Apple says that no good arguments have ever been given that Apple hinders competition in 'a market that is clearly flourishing'.

The billions in fines for Apple follow shortly before the Digital Markets Act comes into effect on March 8. The tech giant talks about an attempt by the Commission to enforce the DMA before the DMA comes into effect. Apple also says that consumers in Europe have more choices than ever before and that the European Commission's decision further reflects Spotify's dominant position.